Xiaomi earnings: First report since IPO, says revenue soared 68%

Xiaomi founder Lei
Jun
Etienne
Oliveau/Getty

• Xiaomi posted a profit of 14.6 billion yuan ($2.1
  billion) on 45.2 billion yuan revenue.
• The company’s main business — smartphones — saw sales
  increase 58.7% versus last year.
• Xiaomi smartphone average selling price in mainland
  China increased over 25%.
• IoT and lifestyle products segment grow fast.

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Xiaomi reported its first quarterly results after going public
last month in Hong Kong, saying second-quarter revenue jumped to
68.3% year-over-year to 45.2 billion yuan. 

The company posted 14.6 billion yuan in earnings, mostly
from “fair value changes of convertible redeemable preferred
shares.” As a result, the diluted earnings per share was negative
0.377 yuan.

“All business segments achieved strong revenue growth, with the
fastest growth seen in our IoT and lifestyle products segment,”
the Chinese smartphone maker wrote in its
earnings release. 

The company’s main business segment — smartphones —
contributed RMB30.5 billion in revenue, an increase of 58.7%
versus last year. “This growth was driven by an increase in both
smartphone sales volume and our average selling price,” Xiaomi
said.

Xiaomi’s average selling price of smartphones on mainland China
increased more than 25% year-over-year, but its smartphone gross
profit margin decreased to 6.7% in the second quarter, compared
to 8.7% a year ago.

The IoT and lifestyle products segment saw sales grow 104.3% YoY.
After Xiaomi smart TV was launched in the India market in
February, the product’s global sales volume increased over 350%
YoY for the second quarter. At the end of June, Xiaomi had
about 115 million connected Xiaomi IoT devices and 1.7
million users who own more than five devices, the company said.

Shares of Xiaomi are trading 5% over their
initial-public-offering price through Tuesday.